Site Search Navigation

Site Navigation

Site Mobile Navigation

Case for retirement visa in United States may gain new traction

By Kevin Brass November 26, 2008 10:05 amNovember 26, 2008 10:05 am

Estate agents in the United States hope a new administration in Washington D.C. will kick start talks for a retirement visa, the so-called “silver card” which would allow foreigners to easily retire in the U.S.

The retirement visa is one of those ideas that’s so simple and makes so much sense it’s amazing that it’s never been adopted. While countries like Panama, Costa Rica, Mexico and Belize present a variety of programs to encourage international pensioners to buy homes, the U.S. offers no simple path for a foreign citizen to retire in places like Florida and California.

Although details still need to be hashed out, a retirement visa would allow foreign citizens of a certain age with a steady pension fund income and a few other verifiable requirements to retire in the U.S. without a hassle.

“There are a lot of people around the world who would love to enjoy their golden years in the U.S. and we don’t have a way for them to do it,” said Macaluso, who served as the 2008 international operations chairman for the National Association of Realtors and now fills a similar role with the Florida Association of Realtors.

However, it’s been difficult to gain traction for the concept in the midst of the emotional and often acrimonious debate over immigration in the U.S. No one was eager to jump on a concept that would encourage immigration, even though, by definition, pensioners would be unlikely to pose a national security risk.

But times have changed, in many ways. The financial crisis may change the tenor of the debate.

“This is not an immigration proposal; it’s an economic proposal,” Macaluso said.

A recent study commissioned by NAR found 7.5 percent of foreign citizens polled expressed an interest in retiring in the U.S.—an unassuming number that could translate to millions of potential buyers, Macaluso says. That could provide a much-needed boost for markets like Florida, California and Colorado.

“If this was in place by now, a lot of inventory would be absorbed and prices would be strengthened because we would have an active market,” Macaluso said.

Macaluso senses a new enthusiasm for crafting legislation for Congress to consider, something that hasn’t happened yet. With other issues higher on the agenda, the NAR has been slow to move on the measure, but he believes the Florida group will find a legislator willing to carry the measure.

A retirement visa makes so much sense! It would help our housing crisis, and stimulate the economy. There are so many self-sustaining retirees who are wonderful additions to our communities, becoming good friends and neighbors. In general, they love to travel, dine out, visit museums, shop – all of which would benefit the economy.

A pension is not medical coverage. The U.S. is already hard pressed to cover those U.S. national retirees on Medicare. Retirees do have more medical expenses and unless someone can come up with an extra pot of money for yet another group of people who have not contributed to the system but who will dip heavily while residing in the U.S. in their nonproductive years, this will constitute yet another drain on U.S. taxpayers.

This country has serious fiscal issues with paying full social security those baby boomers. Now there’s some crackpots scheming to bring more folks who will by definition use medical services they cannot afford? Let’s see the plans for required health insurance and prepaid funeral costs first. Oh – and a promise from the media not to run endless stories about some retiree from _____ who cannot afford to pay his/her hospital bill and some big bad Immigration official wants to deport them from their retirement home.

Retirement Visa? What was Mr. Brass smoking? Foreigner when they come to US, they are just like to roaches, they check in but they don’t check out. Think about the medical expenses for these foreign retirees that going to cost the US tax payer.

What would happen when they reached an age where they could not live alone, could not care for themselves? They would have no one to watch out for them. Would the burden to care for them then fall on our welfare system?

Too many of you are ready to reject this idea without even considering the options. Joanne is just a xenophobe, but for the rest of you – we already require international students to prove that they have health insurance coverage before they are allowed in. We could do the same for retirees. Lots of Canadians (who have better health coverage than Americans) would love to retire outside of the cold. The complaint is that immigrants take jobs, but these people would bring pension funds and create jobs. It would not be the poor people from these countries who would come on a silver visa. It would be the wealthy and upper middle class. I had neighbors like this when I lived in Miami and they generated substantial income for local businesses.

Macarena Rose, BELIZE- In Belize, we have a Retirement Program that I help people with weekly, that qualifies people wishing to retire here, as to being able to provide for their own expenses, and therefore not being a burden to society.
In Fact, these people that retire here in Belize, are an ASSET to us in Belize, as they spend there money here and actually ADD to our economy. For example, I moved here from St. Petersburg, Florida, and I spend my money here in Belize, for living expenses etc…
The US retirement visa would qualify applicants under strict criteria, to assure that it is beneficial to all parties involved. So, often I have clients who in fact buy from me in Belize, as they are frustrated with trying to enter the US, even to visit.

What the commenters don’t seem to understand is that in most countries pensions include healthcare, and these are portable. People in Europe are retiring in many countries, but they need some legal status to allow them to live here and buy property. Since in most cases they haven’t worked here and are therefore ineligible for SS and medicare, it is reasonable to impose requirements vis a vis assets, pension, and medical coverage. These retirees would be assets to our country, both financially and culturally.

I’m frankly surprised at this. I’ve never heard the US mentioned as a retirement haven. Spain, France, Australia, Italy, Mexico, Canada – yes. The issue is the same as everyone else has mentioned. Medical care. US medicine is about the most expensive in the world – and not the best – too much bureaucracy and insurance. At least within the EU one can move from country to country and still receive care. Travel insurance can cost darn near double as soon as soon as it includes the US.

If the Americans can fix their medical provision then they may attract a significant number of retirees. Otherwise this really is a non-starter. The xenophobes can relax – the market is priced out.

HEY ! Thats what I wanna do ! Move to Florida or Califireburnin and pay 6 grand a year in property tax, six grand for homeowners and 12 grand for health ” care” for me and wifey.
Nobody with 1/2 a brain would consider moving there.
7.5 % of these idiots just want to see Britneys shaved cooter.
I spent 22 years saving to get out of that circus.

I’m a UK citizen and have homes in the UK, US and Spain. This is a good idea in attracting what by US standards could be quite wealthy retired citizens. In the region of the UK where I live, the South East, 7% of households have net worth of over 1.5 million dollars and attracting them to retire to the US would be a boost to the economy. This is what happened when large numbers began to retire to warmer countries like Spain helping to transform the coastal areas from some of the poorest to the wealthiest parts of Europe. A requirement for health insurance, provable net assets and pension level could be made conditional on issuing the VISA.

But why would they want to retire to the US when they can enjoy good health care at lower cost in Europe, shorter flights back home (2 hours from Spain to the UK), and similar property prices. In reality the US would have problems competing with other countries to attract these people.

I think that the Silver Visa is a tremendous idea. In all my travels throughout the U.S., some of my favorite new friends that I make are great folks from other countries who have the wealth to spend it in America. These folks are wonderful tenants and neighbors, and enhance the area that they are visiting. With verifiable requirements as to pensions, insurance, etc. why in the world would anyone not want them here in the U.S.? I know Tony Maculsoa and he is an intelligent real estate agent and teacher and is so knowledgable about the international real estate markets. I want to encourage him and support him in his past and future championing of this retirement visa. He understands this concept so much more than these naysayers who are only focused on another drain of our taxpayers. You must know and see the benefits to our economy of this in so many ways. Let’s focus on the positive and this , my friend, is a positive. Thanks, Kevin, for posting on this and thanks again to Tony for his many, many efforts toward this cause.

This is a healthy debate, however not all the facts of my proposed “Silver Card” have been disclosed in the article. In the interest of brievity, the Proposal is simply a type of entry card which would be available to individuals who are of retirement age (50-55+), a Non-work provision (so they are not accepting an American job) with proven income from their country of origin or from US Investments and similar to our student visas a requirement for providing health insurance and no reliance on any US government services. If their country of origin allows portability of their health benefits fine, or insurance can be purchased (most US health plans are being accepted in Panama, as an example). These people would be completely veted without criminal records.
First they would provide additional jobs for Americans in the service sector. They would absorb excess real estate inventory on the market now, which would result in the assistance of stabilization of market prices. They would be paying real estate taxes to our communities, income taxes on US sourced investment income, sales taxes on the purchases they make and contribute to the revenues of the recreational industries throughout the country. It is hopeful that this proposal will receive serious consideration as we look to find ways to have revenues entering this country and provide the potential for job creation and stabilization of the real estate markets.
This is the concept, but no specific legislation has been drafted.

I agree with and support the efforts of NAR, National Association of Realtors, Florida Association of Realtors and Tony Macaluso in developing a Silver retirement VISA. As has been stated so well by Tony in his comments, the people who would qualify for the VISA would be a benefit to the US Economy, the service sector, help stabalize the housing market, buy cars and other products for their homes etc.. Some would invest in the US stock market and other Investments as they become more familiar with them, including small businesses. All would create or keep more US jobs.
To qualify for the VISA they would have health insurance. Most of them have socialised health insurance or private insurance from their home countries and prefer to add US coverage to their existing coverage by paying an additional premium. I own homes and businesses in Europe and the US and know that there are many in Europe who prefer the US life style over living in Spain, Portugal, Marocco or Eastern European countries like Bulgaria. These are people who have the money and income where the higher cost and travel distance is not an obstical so yes the US is very desireable to them.
I have asked attendees of my seminars and classes on investment across the US including in Florida, Illinois, Missouri, California, Colorado and Texas to support Tony and the various associations in their efforts to bring these people and their money to our country.
Manfred Chemek, CCIM, TRC, CIPS, FIREC, Dipl. Kfm.

I can clearly see both sides of the coin. We need to be more attractive to foreigner’s to retire here and we need to improve our health care for all concerned.
Danielle Carlson
World Star Global Real Estate

As someone from across the pond who is involved in the property industry, I know that there are many from the UK who would love the idea of a Silver Visa. Surely this can only have a very positive impact on your market and service industries. Clearly it would be crazy not to have checks in place to ensure income and health arrangements in order to ensure that retirees are not a drain.
Keep up the efforts please Tony Macaluso and NAR.

The “silver visa” is way overdue! I am currently working with a German National who wants to spend $2 Million for a house to spend the winters in Sunny Florida. When he comes in – he might only be allowed to stay 3 month! We need to open the doors to retirees from allover the world. thiswould help the housing market and the overall economy. There are spending money here! Many other countries offer great retirement programs! These seniors are financially sound and do not need “our” health insurance! Go Tony Macaluso! Any help you need – I am there!

I think the “silver green card” and excellent idea. I am now 68 and moved to Florida in 2004 with my wife on an L1, qualified as a licensed real estate broker, as I was opening a real estate office selling businesses, and all went well for a three years. I also invested over $4 million in a home and various projects. Due to the economic situation my developments are on hold. I received a renewal of my L1 until December 2009 but when I attended the US Embassy in London in September 2008 they did not confirm the renewal and have recommended a 221g a revocation due to my not currently employing sufficient Americans. I have been stuck in the UK for three months and spending thousands of pounds and dollars on lawyers. I still have substantial investments in the UK and should I or my wife become ill, as we could only get suplimentary medical insurance, we would have to return to the UK. Around 30 years ago when I first became involved with selling businesses in the States you could buy a $50,000 bond which would be cashed in should you have to leave the States for any reason. What happened to that good idea?

As someone with properties in US, UK, Spain and Canada, I travel frequently and think this “Silver Visa” is an excellent idea. Our European pensions are portable and
proof of health insurance would ,I´m sure, be mandatory.
Those who qualify would only be an asset to their communities and NOT a liability. This is not immigration.
If this type of visa is structured by the US authorities, with the best provisions to protect the US taxpayer, the US would be receiving an influx of wealthy permanent tourists.
As many on the blog have commented that the problem is people using the US health care system, let me say that at least for Europeans, their long term care is provided in the country of origin, if required. Most people on this type of program would have enough assets to be able to pay for long term care, wherever they choose. – not only the US –
some other places, do have better health care than the U.S.
The constant 3 month dedline to leave the country is a waste of resources,
both for the authorities and those who would benefit from this type of visa. I hope Tony can find a legislator who can move forward with this proposal, I think its a win-win situation.

What's Next

About

Kevin Brass

Kevin Brass travels the world reporting on tempting locations, unusual homes and hot markets. His home-buying experience began in Southern California, where he managed to completely miss the real estate boom. He now lives with his wife, Lietza, in an oddly Tudor-style two-story house with canyon views in the suburbs of Austin, Texas. The key selling point was a screened porch, a special treat for their two cats. Unfortunately, only one has figured out the mechanics of the kitty door. He is a longtime contributor to the Properties section of the International Herald Tribune, The New York Times, Los Angeles Times, People, NWA World Traveler and a wide variety of other publications.